

[Federal Register: December 27, 2006 (Volume 71, Number 248)]
[Notices]               
[Page 77841-77842]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27de06-116]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54965; File No. SR-NASDAQ-2006-052]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Waive Distributor Fee for Specific Data Element

December 19, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 7, 2006, The NASDAQ Stock Market LLC (``Nasdaq'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been substantially prepared by Nasdaq. Nasdaq has filed the 
proposal pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6) thereunder,\4\ which renders the proposal effective upon filing 
with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to allow for the unlimited, free distribution of 
Nasdaq's aggregate best bid and offer quotation for Nasdaq's quoting in 
stocks listed on the New York Stock Exchange LLC (``NYSE'') and the 
American Stock Exchange LLC (``Amex''). Below is the text of the 
proposed rule change. Proposed new language is italicized.

7023. Nasdaq TotalView

    (a)-(b) No change.
    (c) OpenView
    (1) The OpenView entitlement package consists of all individual 
Nasdaq Market Center participant quoting quotes and orders in non-
Nasdaq exchange-listed securities in the system. There shall be a 
charge of $6 per month per controlled device for OpenView.
    (2) The OpenView Top-of-File (``OpenView TOF'') entitlement package 
consists of the Nasdaq aggregate best bid and offer quotation for non-
Nasdaq exchange-listed securities in the system. There shall be no fee 
for the distribution of the OpenView TOF.
    (d) No change.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, Nasdaq included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. Nasdaq has prepared summaries, set forth in sections A, 
B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    To encourage more competition in the trading and quoting of NYSE- 
and Amex-listed stocks, as well as to encourage subscribership to 
Nasdaq's full-depth products, Nasdaq proposes new Nasdaq Rule 
7023(c)(2) to institute a fee waiver for firms wishing to distribute 
the OpenView Top-of-File, which consists of Nasdaq's aggregate real-
time best bid and offer quote for NYSE- and Amex-listed stocks. The 
aggregate best bid and offer is a single data element within Nasdaq 
OpenView. That element can be extracted from OpenView and, under this 
proposal, can be separately distributed free of charge. Nasdaq believes 
that this will promote wider distribution of data and benefit investors 
wishing to use that data in making investment decisions. Nasdaq has 
filed this proposal as a change to the rule manual of The NASDAQ Stock 
Market LLC. As such, it will be operative when Nasdaq begins operating 
as an exchange with respect to the trading of NYSE- and Amex-listed 
securities.\5\
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    \5\ Telephone conversation among John Roeser, Assistant 
Director, Division of Market Regulation (``Division''), Commission, 
David Liu, Special Counsel, Division, Commission, and Jeffrey Davis, 
Vice President-Deputy General Counsel, Nasdaq, on December 18, 2006.
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\6\ in general, and with 
Sections 6(b)(5) of the Act,\7\ in particular, in that waiving the 
distribution fee for Nasdaq's aggregate best bid and offer in NYSE and 
Amex securities will encourage broader dissemination of that data and 
thereby increase transparency in those securities.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq does not believe that the proposed rule change will result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change is subject to Section 
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder \9\ 
because the proposal: (i) does not significantly affect the protection 
of investors or the public interest; (ii) does not impose any 
significant burden on competition; and (iii) does not become operative 
prior to 30 days after the date of filing or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest; provided that Nasdaq has given the Commission 
notice of its intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least five 
business days prior to the date of filing of the proposed rule change, 
or such

[[Page 77842]]

shorter time as designated by the Commission.\10\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ Nasdaq has satisfied the five-day pre-filing requirement.
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    At any time within 60 days of the filing of such proposed rule 
change the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors or otherwise in 
furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to rule-comments@sec.gov. Please include 

File Number SR-NASDAQ-2006-052 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-NASDAQ-2006-052. 
This file number should be included on the subject line if e-mail is 
used. To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, 

all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference Room. Copies of the 
filing also will be available for inspection and copying at the 
principal office of Nasdaq. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-NASDAQ-2006-052 and should be submitted on or before 
January 17, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-22086 Filed 12-26-06; 8:45 am]

BILLING CODE 8011-01-P
